NVIDIA falls 2.9% as reports link SpaceX talks to large chip purchases

What happened

Nvidia (NVDA) fell 2.9% on October 8, 2026, after reports said SpaceX is exploring about $40 billion in financing to buy Nvidia chips. The stock opened 1.1% below the previous close, and the move came as those reports circulated, suggesting company news drove the session. Trading volume was 1.1 times its 20-day average, indicating stronger-than-normal investor activity as the headlines spread.

How big was the move

The decline was 1.3 times a typical daily move for this stock, and it moved far more than both the market and its sector, a pattern consistent with a large, mostly company-specific move. The S&P 500 fell 0.5% on the day while the Technology sector median fell 0.8%, and the stock’s performance was 2.2 percentage points worse than the sector median. The stock’s beta of 1.85 shows the stock tends to move more than the market, amplifying the effect of company-specific developments.

The technical picture

Technically, Nvidia remained in an established uptrend: the 50-day average is above the 200-day average, a sign of an established uptrend, and the stock had been above its 200-day average for 50 consecutive trading days. At session close the stock was 1.9% above its 20-day moving average and 4.1% above its 50-day moving average, while it stood 14.1% above its 200-day moving average. It was 5.3% below the 52-week high. Momentum readings were neutral, with a Relative Strength Index (14 days) of 54, and volatility was 37% annualized over 60 days, lower than 79% of its own readings over five years.

Fundamentals and valuation

Over the four quarters through July 26, 2026, the company reported revenue of $302.97 billion, which grew 83.4% from a year earlier. Diluted earnings per share were $7.91, which rose 125.4% from a year earlier. Gross margin improved to 74.7% from a year earlier’s 69.8%, and operating margin widened to 65.2% from 58.1% a year earlier. Those profitability gains accompanied a free-cash-flow margin of 41.9% and a return on invested capital of 59.5%.

The balance sheet showed net debt of 0.1 times EBITDA, and the company’s share count over one year decreased by 1.0%. The stock traded at 29.1 times trailing earnings and 24.9 times expected forward earnings, with a free-cash-flow yield of 2.2%. That valuation sits lower than 95% of its own readings over the past five years, where the five-year median was 57.4 times earnings, reflecting rapid earnings growth versus historically higher multiples.

Earnings and analyst expectations

Nvidia’s last report, on August 26, 2026, delivered earnings per share of $2.22 against $2.09 expected, 6.2% above estimates, extending a run of beats to 14 consecutive quarters. The company’s average surprise over the last four reports was 5.2% above estimates, and the typical two-day reaction after recent reports was that the stock rose 0.8%. The next report is scheduled for November 18, 2026.

Among 79 analysts covering the stock, the consensus rating is Buy and 76% of analysts rate the stock a buy. The consensus price target is $338.96, which is 47.1% above the closing price. Those forecasts, combined with strong recent fundamentals and elevated growth scores, help explain why analysts remain broadly positive despite the stock’s high absolute valuation.

What to watch

• November 18, 2026: next earnings report date.
• Reports that SpaceX is in talks to raise about $40 billion to purchase Nvidia chips, including reports of roughly $10 billion in bank loans and $30 billion of investment-grade debt.
• The stock’s distance from the 52-week high: 5.3% below the 52-week high.
• Price to trailing earnings of 29.1 times trailing earnings and Price to forward earnings of 24.9 times expected earnings.